Tuesday, May 21, 2013

One of our reliable indicators for market tops indicates a top here. But, you look close in the chart and see failures are not uncommon for this indicator. 1, More analysis of the market suggests to us that market top still has time (may be 3 - 4 weeks). 2, But, be warned, 'coz this may be it. Either it is case 1, or 2, we are definitely going to see some volatility right here. Still staying long the market right here with wide stops. Nothing to lose for those who played along with us. You might be thinking that my last post was 2+ weeks back and I am bragging of some play. To be honest, when VIX is at 12, you don't "play" everyday swings. You just set the account on cruise and sit back. I hate to trade when VIX is low, it is a waste of time. Swing trading is better. I guess you got the gist of my post. Long story short, I see some volatility right here but market top has some ways to go. Nothing guaranteed, but use this as a guide.